The Franchise is enable small entrepreneurs gathered around a successful business ideas to act like a large firm.
The Franchise System, that was born in the United States of America, quickly spread to the world thanks to its efficiency and profitability.
The brands use the franchise system have cleary outstripped their competitors, the race is between franchise brands now. If local and independent brands can attract consumer attention and grow with them, it is thanks to the generation that associates quality with the corner shop.
The fact that, malls do not even want to include non-chain brands is an indicator of how franchisors will prevail in the future.
Even non-franchise companies, when they use franchise techniques; that is they implement a single type of enterprise, standard operating system, training and inspection, they succeed in spreading by bieng chained.
A franchise system must be able to generate good revenue in each of its businesses.
There is no slice the pie, if there can be no franchise. The franchisor will not keep business unless it is making more money than it can make on its own.
If the franchisor can not increase the effort and profit it has put forth with its original business idea and model, it can not benefit from it, teach its business, use its brand, and run its system.
Franchisee and franchisor should share the added value created by the system, and the brand in a balanced way.
Equilibirium is the situation which each takes as much as it can earn with the money, knowledge, and effort it puts in, and the additional profit is shared in proportion to the powers of the parties.
There is no coincidence that the first implementers of the franchise system in the world were manufacturers. Manufacturers usually use the share they allocate for advertising from their high turnover for the same brand chains and provide synergy.
Manufacturers use modern management techniques with their large managerial staff and act more experienced and brave in their decisions and breakthroughs.
Franchise provides customer loyalty with quality service
Especially hypermarkets and chain stores charge fees for putting the products they sell on the shelf. Establishing your own chain of stores saves such costs.
Continuity in production is ensured by businesses that work regulary and buy constantly.
Firms applying franchising protect their brands by growing in the face of increasingly intense domestic and foreign competition.
It leaves the riot, which can not take place in all of the malls to its competitors.
The advertising fund gets stronger, when it becomes easier to be a brand.
Franchise is the only and last opportunity for the brand, which has been inherited from previous generations, has been asleep for many years and almost forgotten, to turn into material value.
Franchising is the fastest way to move from a tradesman to a professionals.